Use the Table for the Question(s)below

question 20

Multiple Choice

Use the table for the question(s) below.
Consider the following probability distribution of returns for Alpha Corporation:
-The expected return for Alpha Corporation is closest to:

• A)6.67%.
• B)5.00%.
• C)10%.
• D)0.00%.

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Definitions:

Excise Tax

A tax directly levied on certain goods, services, and activities such as tobacco, alcohol, and gambling.

Tax Structure

Specifies how a tax depends on the tax base; usually expressed in percentage terms.

Tax Base

The measure or value, such as income or property value, that determines how much tax an individual pays.

Taxation

The process whereby authorities impose financial charges on citizens or corporations to fund government spending and public expenditures.